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October 3, 2008

The LTE v. WiMAX Debate Still Rages – Does It Matter Now?

This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
P.J. Louis
President, PJ Louis LLC
Implications: Given the current economy is the debate of LTE versus WiMAX even relevant?   I think the answer is yes.  The 4G technology decision is relevant to all carriers.

Analysis: The debate of whether or not one carrier provides 4G via LTE (long term evolution) versus WiMAX is important even now.  Despite a recession, carriers still need to position themselves in the marketplace.  Over time the carriers’ intentions are important to the vendor community because these intentions can cause the shift of tens of billions of dollars in research, development, and manufacturing.  In other words; investment dollars are at risk.

To some extent, the carriers will be forced by Wall Street to state their intentions.  Carriers in turn are obligated (morally not legally) to let the marketplace know what their technology decisions will be.  It is a balancing act.

The smaller carriers will be influenced by the large carriers like AT&T and Verizon.

Will MVNOs be a factor in the decision of the carriers?  I don’t think so.  The carriers decide what is best for themselves.  MVNOs are nothing more than icing on the cake for carriers' bottom line.  MVNOs are and should be technology neutral.


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